ABU DHABI, United Arab Emirates - November 29, 2009 - The central bank of the United Arab Emirates today attempted to head off fears of a run on banks in Dubai.

It issued a statement saying it “stands behind local and foreign banks operating in the country" amid fears over the state's crushing debt.

The UAE’s official WAM news agency said today the central bank issued a notice to Emirati banks and foreign banks with branches in the country saying it would make available “a special additional liquidity facility linked to their current accounts at the central bank”.

The statement comes just days after world markets reacted with shock to news that state-owned Dubai World wanted creditors to give it a six-month extension on paying some of its $60 billion debts.

Dubai is expected to make a statement about its financial position tomorrow, when local markets reopen. They have been closed since Wednesday night for the Eid al-Adha religious festival. The statement will aim to convince investors that the problems at Dubai World are separate from the country’s sovereign wealth.

Over the weekend Abu Dhabi, as capital of the United Arab Emirates (UAE), played host to a private meeting of Gulf officials to thrash out a response to the crisis.

An Abu Dhabi official said yesterday it would pick and choose how to assist its neighbor.

“We will look at Dubai’s commitments and approach them on a case-by-case basis,” the official said. “It does not mean that Abu Dhabi will underwrite all their debts.”